BGC Partners Announces Reduced Interest Rate on GFI Group's 8.375% Senior Notes due 2018
Upgrades of GFI Group Senior Debt by S&P, Fitch, and Moody's expected to Lower BGC's Annual Consolidated Interest Expenses by a Total of $4.8 Million
NEW YORK, Jan. 19, 2016 /PRNewswire/ -- BGC Partners, Inc. (NASDAQ: BGCP) ("BGC Partners," "BGC," or the "Company,") a leading global brokerage company servicing the financial and real estate markets, today announced the reduction in the interest rate applicable to the 8.375% Senior Notes due 2018, (CUSIP No. 361652AA8) (the "Notes") issued by its subsidiary GFI Group Inc. ("GFI") from 8.625% to 8.375% per annum. Prior to the acquisition of a majority of GFI by BGC in the first quarter of 2015, the Notes were subjected to 200 basis points of additional interest due to the cumulative effect of downgrades to GFI's credit rating. This increased GFI's interest expense by $4,800,000 per year. On July 10, 2015, the Company fully and unconditionally guaranteed the obligations of the Notes. Although BGC Partners is not rated by Moody's, it is rated BBB- by S&P and Fitch. As a result of BGC's guarantee, the Notes were upgraded by S&P and Fitch to BBB- on July 13, 2015, which reduced the additional interest to 25 basis points. This lowered the Company's expected annual consolidated interest expense by $4,200,000. On January 13, 2016, Moody's upgraded GFI Senior Debt to Ba2 from Ba3. This upgrade eliminated the additional interest entirely, reducing the Company's expected future annual consolidated interest expense by another $600,000. In summary, since the successful completion of BGC's tender offer for the majority of GFI's shares in the first quarter of 2015, the interest rate on the $240,000,000 aggregate principal amount of Notes has been reduced from 10.375% to the original rate of 8.375%, while the related expense has been lowered by $4,800,000, all else equal. About BGC Partners, Inc. BGC's customers include many of the world's largest banks, broker-dealers, investment banks, trading firms, hedge funds, governments, corporations, property owners, real estate developers, and investment firms. BGC's common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com. BGC, BGC Trader, GFI, FENICS, FENICS.COM, Capitalab, Swaptioniser, Newmark, Grubb & Ellis, and Grubb are trademarks, registered trademarks and/or service marks of BGC Partners, Inc. and/or its affiliates. Knight Frank is a service mark of Knight Frank (Nominees) Limited. Discussion of Forward-Looking Statements about BGC Partners
Logo - http://photos.prnewswire.com/prnh/20110720/MM38935LOGO To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bgc-partners-announces-reduced-interest-rate-on-gfi-groups-8375-senior-notes-due-2018-300206417.html SOURCE BGC Partners, Inc. |
|